A tax policy analyst proposes that we should eliminate exemptions from taxes on food and medicine (i.e., we should start taxing these goods) because taxes on these goods would be an efficient way to raise revenue. a. What do you think the analyst means when she says that taxing these items would be an efficient way to raise revenue?                 b. Is the analyst correct that taxing food and medicine would be an efficient way to raise revenue? Draw a diagram to help explain. Hint: Think about the demand curve for these goods. c. Why might there be little political support for such a policy

Q: You read the following from an article on WebMD: "Spending on health care is out of control, and the…

A: Spending on health care is driven by government.

Q: The 2010 health reform law fails to provide universal health insurance coverage. T or F?

A: The 2010 Health Reform Law was named as Affordable Care Act.

Q: With the help of appropriate diagrams, explain how a tax can be used to reduce the consumption of a…

A: Tax are contribution to goverment which are levied on individual as well as or a firm which are…

Q: What is an example of a market that govenrments should not tax for economic reasons?

A: Taxes are the economic instruments given at the hands of the government. Taxes work as revenue for…

Q: Which of the following are ways that a private insurance company or the federal government controls…

A: The drugs being used for the management and prevention of chronic diseases are known as prescription…

Q: What would happen if, in order to provide lower cost health care, the government decided to set a…

A: Price ceilings are maximum price upper limits, imposed by the government, above which nobody is…

Q: Assume that the government decides to subsidize the price of healthcare. The subsidy will be given…

A: When the government subsidizes healthcare for consumers, demand for services increases. While…

Q: For each of the cases below, describe the type of entry barrier that appears to be most relevant.…

A: There are various entry barriers in the different markets, that may be because of the government…

Q: In the following graph, suppose market is in equilibrium at point A. Determine if you agree or…

A: The market is in equilibrium at point A. We will note the changes in the demand and supply curve to…

Q: Explain how an “individual mandate," where every resident of a country is required by law to…

A: Insurance is a way used by individuals and firms to prevent any event from having a huge detrimental…

Q: If the government wants to use a Pigouvian tax to alleviate the problem of obesity contagion, what…

A: We are going to discuss ways to minimize negative externalities.

Q: Suppose that Edison, an economist from a college in Pennsylvania, and Hilary, another economist from…

A: The experts who study and analyze the production, distribution, and consumption of goods and…

Q: Ralph will consume any health care service just as long as its MB exceeds the money he must pay out…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: In order to curb the use of illegal drugs such as cocaine or the use of harmful legal substances…

A: Governments have various policies at their disposal to curb negative externalities. The choice of…

Q: Why does the US government feel that the use of illicit drugs such as cocaine and opium (morphine)…

A: The government uses fiscal policy to increase employment and investment by increasing the aggregate…

Q: We have heard of "Rock the Vote" or even "Vote or Die." What these ad campaigns are attempting to do…

A: Answer- The ad campaigns are to do is reduce the amount of voter apathy. Economists call this…

Q: One rationale for imposing taxes on alcohol consumption is that people who drink alcohol impose…

A: Introduction: Many people regard alcohol as the life of the party, but it is also regarded as a…

Q: 1. If the number of people with insurance increases, then what will most likely occur? a. a. a. a.…

A: Insurance is a risk management that protects people from unforeseen events in the future. For…

Q: If the government imposes a tax of 8% on luxury cars that the consumer must pay, why does the…

A: The tax is shared by the consumer and producer based on the elasticity of the demand and supply. If…

Q: Use the theories of market failure and government intervention to analyse the motives of government,…

A: Market: It refers to a place where goods and services are sold, and that place is within reach of…

Q: Some firms offer their employees' health care plans with high deductibles, sometimes as much as…

A: Health insurance plans with various deductible amounts influence consumer behavior regarding the use…

Q: Adverse selection arises in the market for health insurance because Moral hazard arises in the…

A: Adverse selection refers to asymmetry of information between the parties like one party knows more…

Q: 1. An article in the Economist observes: "Insurance companies often suspect the only people who buy…

A: Insurance is a type of risk management that involves the transfer of the risk of financial loss from…

Q: Suppose you are told that electronic cigarettes cause health problems such as depression and…

A: Welfare economics is the study the allocation of goods and resources and how it affects social…

Q: If tax incidence is not affected by whether the government makes buyers or sellers pay the tax then…

A: In a market, governement imposes tax on the exchange of goods and services between seller and buyer…

Q: Suppose that Hubert, an economist from an AM talk radio program, and Kate, an economist from a…

A: Meaning of Tax Imposition:The term tax imposition or the tax hike refers to the situation under…